Studi Literatur Determinan Internal Control Disclosure

Effective internal control is of great significance in ensuring the quality of financial reporting, preventing business risk, and achieving sustainable development as well. The aims of this study were to examine the determinants of the Internal Control Disclosure (ICD) that was used in the research and its impact on corporate value. The factors tested in this study were the size of the board of commissioners, the proportion of independent board of commissioners, board of commissioners' meetings, the size of the audit committee, and the audit committee meetings. This study was conducted using content analysis from the annual reports of manufacturing companies in Indonesia from 2012-2016. The study found that the size of the board of commissioners, the proportion of independent board of commissioners, board of commissioners meetings, and audit committee size had a positive effect on the extent of ICS disclosure. Furthermore, the disclosure of ICS has been shown to increase the value of the company. Another finding was that audit committee meetings negatively affect the extent of ICS disclosure. Based on the above findings, it could be concluded that the board of commissioners and audit committees encourage companies to conduct ICS disclosure as a means of reducing agency problems. ICS disclosure proved to be used as a monitoring mechanism used by stakeholders in decision-making related to the company.